For-Sale Price Limits

For-Sale Affordability Criteria. The Housing Agency calculates for-sale dwelling unit price limits by household size and by income group by formula including the following factors:Thirty percent of gross income is available for housing cost.The estimated amounts for real property tax and home owners insurance consistent with industry standards.If sale is a condominium or requires association or maintenance fees, the estimated cost for association or maintenance fees consistent with industry standards.A fully amortized 30 year fixed interest rate mortgage loan.A loan interest rate consistent with prevailing mortgage interest rates for conventional owner-occupant first mortgage loans rounded upwards to the nearest quarter percent (0.25%).A down payment amount equal to 5% of the sale price.Sales prices are rounded to the nearest $100.Workforce For-Sale Housing Price Limits. Within 30 days from the date that HUD issues the Kaua'i median household income for the year, the Housing Agency will have available that year's workforce for-sale housing price limits. The workforce for-sale housing price limits will include the prices for the applicable HUD low income groups and the affordable and gap-group income groups by household size from a household of one to a household of eight. The Housing Agency may revise the workforce for-sale housing price limits throughout the year as the prevailing first mortgage interest rates change.